Plastics M&A Update – October 2023

Plastics Industry M&A Activity Tracking

Global Plastics M&A recorded 39 deals in October, which was the highest level of monthly activity in 2023 and was the third consecutive month with over 30 deals announced. Transaction volumes were driven by strategic buyers, which recorded over 25 transactions for the first time since 2021. Private equity add-on buyers remained active, but platform transaction volumes fell after recording several months of increased deal activity. Overall, Global Plastics M&A activity has picked up over the last several months after a slow start to the year.

• Strategic buyer activity surged in October, with over 67% of the deals in the month attributable to strategic buyers. Comparatively, strategic buyers have only accounted for 51% of the year-to-date transaction volume
• Private equity add-on buyers remained active in October, posting nine deals for the second month in a row. Four platform deals were announced in the month, which marked an end to several months of above-average deal activity from platform buyers
• The Medical end market recorded a significant uptick in transaction activity, posting five deals and recording its third-highest month on record
• The Injection Molding, Film, and Specialty subsectors led all subsectors from a transaction volume standpoint and were key drivers in October being the most acquisitive month of 2023

After a strong Q3 2023, the Global Plastics M&A market remained highly active in October. Elevated deal volumes in October were an encouraging sign for the sector, which had been down to start the year. Despite increased transaction activity over the past few months, the outlook for plastics M&A remains uncertain due to swings in activity levels amongst the different buyer types. If you are a plastics company considering a merger, acquisition, sale, or recapitalization in the short or longer term please consider leveraging PMCF’s transaction planning and execution expertise to best position your company in a transaction.

Sources: Capital IQ, PitchBook, Thomson Reuters, Company Reports, PMCF. Data as of October 31, 2023

Plastics M&A By Subsector

Total Plastics M&A By End Market

Plastics Transactions By Buyer Type

Notable M&A Activity

Public Entity Performance

Major News

• The Improbably Strong Economy (The Wall Street Journal)
• Despite Economic Risks, Companies Are Hanging On to the Workers They Have (The Wall Street Journal)
• Plastics Still Recovering from Pandemic but Poised for Growth (Plastics News)
• International Buyers Bring Opportunities to Domestic Plastics Firms (Plastics News)
• Newsom Blocks Bill Aimed at Preventing ‘Regrettable’ Plastics Replacements (Plastics News)

Download Plastics M&A Update – October 2023